Some Facts about Reverse Mortgages

Posted by editor on January 2, 2010

Reverse Mortgages are sometimes called Senior Reverse Mortgages, are a type of loan that pays seniors out of the equity they have accumulated in their home. Many retirees and other senior citizens whose find that their monthly income is not sufficient for them to live on as comfortable a lifestyle as they would expected to have had in their golden years have found that these types of arrangements are perfect for their needs.

A reverse mortgage is, simply put, a mortgage in reverse! You have been faithfully paying off you mortgage for many years, often twenty years or more. You don’t want to have to leave your primary residence, but you do need a greater income. In effect, a reverse mortgage will allow you to take back much of the money you have paid into your home to now help you when you find you need it the most – after your most productive working years are over and done with and you want to enjoy your life and everything retirement can offer.

The terms of a reverse mortgage will depend on the value of your primary home and the equity you have built up in your home. Equity calculated as the percentage of the home’s value that is belongs to you after your remaining mortgage is taken into account. For most senior homeowners and retirees, this will usually represent a substantial amount, in many cases, far more than you might have expected. You can use a reverse mortgage calculator to determine how much actually is and from there, how much you can be paid out per month.

You have worked really hard through good times and bad to pay for your home. Why not let your home now work for you, now that you are retired or on a limited income? Life is to be enjoyed, and a reverse mortgage can ensure that you get the most out of your golden years!